Transport Corporation of India Investors Presentation FY 2016-17 (9M) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cautionary Statement Statements in this “Presentation” describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include global and Indian demand supply conditions, cyclical demand and pricing in the Company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and other factors. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise . 2
Group TCI SBUs & Services Other Group companies JV with CONCOR to provide FTL/FCL, LTL & Over- end to end multi modal dimensional cargo services solutions . through Road, Rail & Sea. JV with Mitsui & Co for Auto logistics (Toyota India project) A Single-window solutions enabler from TCI Transportation A JV between Indorama Eleme Conceptualization to Petrochemicals Ltd. and TCI Company Nigeria Ltd. Global Implementation Specialized in offering time Leading player in Coastal definite solutions with strength Shipping , NVOCC & Project of 2000+ team of professional and 13000+ delivery points. Cargo TDL undertakes development Cater to local logistics of the commercial properties of requirement of a country TCI. It also develops large scale Warehouses, Logistics Parks etc # TCI XPS has been demerged into a separate entry TCI Express Ltd at the close of business hours of 31 st March 2016 3
Group TCI Key Facts Year of 1958 Establishment E-Com 2800 Cr. Turnover Movement 2.5% by Value of India GDP Cold Chain 6000+ Employees Strength IT enabled Connecting 1400+ Owned Branches SAARC Vehicles/Day 9000+ Managed on Road 4
TCI Standalone Key Facts New Developments Turnover 1600 Cr. 8 Fulfilment centers with E-Com 3500+ processing Employees Strength capacity of 1 Lac orders/day IT enabled 900+ Inauguration of Owned Branches World-Class Cold Cold Chain Warehouse on Chain Warehouse Covered Pataudi Road, 11 Mn Sqft Gurgaon Area managed Incorporation of Vehicles/Day Connecting 100% subsidiary 6500+ Managed on Road in Bangladesh SAARC as “TCI Bangladesh Limited” 4 Cargo Ships 5
Corporate Governance Rated and Certified Listed Entity Engaged in areas of education, women & child health, disability alleviation and rural sports growth. Non Discrimination Policy Corporate Social Responsibility On-going Investor Outreach programs • Regular conference calls and annual meet with shareholders and analysts • Timely and transparent disclosures through comprehensive annual reports and corporate presentations (readily available on the Company’s website) 6
Awards & Recognition 7
Board of Directors Name Designation Mr. S M Datta Chairman (Non-executive independent director) Mr. D P Agarwal Vice Chairman & Managing Director Mr. S N Agarwal Non-executive director Mr. O S Reddy Non-executive independent director Mr. K S Mehta Non-executive independent director Mr. Ashish Bharat Ram Non-executive independent director Mr. Vijay Sankar Non-executive independent director Mrs. Urmila Agarwal Non-executive director Mr. M P Sarawagi Non-executive director Mr. Chander Agarwal Non-executive director Mr. Vineet Agarwal Managing Director 8
Impact of Macro-economic changes on Logistics • Rationalizing the impact of taxes on Production, Distribution and Inventory management GST • Consolidation of warehouses and moving towards Hub-and-spoke model Multi modal movement between Hubs • • Creation of additional dedicated rail freight capacity, DFC/ • Will reduce unit cost of Transportation by speeding up freight train operations. Diamond • Increased bulk multi modal movement for improved productivity & efficiency Quadrilateral • Will result in development of logistic Warehouses in the vicinity of Freight Corridor. Increased • Growth in trend towards outsourcing of logistics in non traditional industries outsourcing of • Larger scope of outsourcing e.g. order processing, packaging, kitting etc. will go up Logistics E-commerce With increased per capita disposable income, consumption driven sectors will grow • driven growth in Sectors like Food services, e-commerce, consumable durables etc. will get a boost . • consumption 9
GST-Key Implications on Warehouse & Transport Industry • Rationalizing the impact of taxes on Production, Distribution& Inventory management GST • Consolidation of warehouses • Multi modal movement between Hubs Transportation • Larger Warehouses and borderless movement of goods would leads to increased transportation lot sizes, multimodal movement • Lesser border checks/paper work would lead to faster movement of trucks. Transit times and cost may shrink by 20-30% Warehouse • Network to be determined based on the ambit of Additional Tax. • Network optimization efforts to commence • Consolidation of warehousing to commence. • Emergence of hub and Spoke model • Larger sizes of warehouses (hubs) • Warehouses closer to manufacturing and/ or consumption areas. 10
Impact on Logistics Development Sagar Mala Sagar Mala envisages port led development of the country that would looks towards transforming the existing Ports into modern world class Ports and integrate the development of the Ports, the Industrial clusters and hinterland and efficient evacuation systems through road, rail, inland and coastal waterways resulting in Ports becoming the drivers of economic activity in coastal areas The project aims to change the way logistics evacuation happens in India, save logistics costs nationwide for cargo handled and evacuated through seaports, boost overall economic development through ports and empower coastal communities Diamond Quadrilateral The Diamond Quadrilateral is a project of the Indian railways to establish high speed rail network in India. This quadrilateral will connect the four metro cities in India, i.e. Delhi, Mumbai, Kolkata and Chennai. This corridor will be operated on broad-gauge tracks and will pass through 14 states and territories of India. 11
TCI : Serving the Complete Ecommerce Chain 1. Marketplace Companies Warehouses Dedicate & Suppliers 2. Inventory Based Consolidation Shared center Customers ~ 100,000 ~ 200,000 ~ 20,000 Orders / day units / day Deliveries / day Group Companies Group Companies & Divisions & Divisions 3. At Customer place 2. Inventory / Marketplace / Cross Dock- FC 1. At Supplier i Receipts and Bar Coding i Doorstep delivery i Supplier Coordination ii Quality Check and Put away ii FOD ii Scheduling iii Order processing on SLA iii Reverse logistics iii Route optimization iv Sortation and Ship+ CUBISCAN v Return Shipment Management 12
TCI Freight Division • One of India’s premier organized freight services provider with pan India presence • Single window Key Account Management (KAM) solutions for managing information flow and tracking. Started new service for SAARC region to provide door to door service • Around 2800 trucks and trailers, both owned and leased, provide freight movement services on a daily basis • Over dimensional Road Rail cargo Provides full truck load Provides logistics Provides different (FTL), less than truck solutions for over types of services such load (LTL) and parcel dimensional, bulk and as containers, parcel heavy cargo services van, wagons and special automotive Project management 600 owned offices wagons Own hydraulic axles and Large client base trailers 51% equity stake 49% equity stake Integration of rail and road cargo movement. Provides end to end multi modal solutions. q q Establishing synergy between two rail and road giants. Significantly reduces turnaround time q q 13
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